DOHA, Qatar: Oil prices fell on Wednesday as optimism over Pakistan and Qatar mediated talks between the United States and Iran eased concerns over potential disruptions to global crude supplies after US President Donald Trump said recent meetings in Doha had gone well.
Brent crude futures fell 95 cents, or 1.3%, to $72.00 a barrel, while US West Texas Intermediate (WTI) crude declined 54 cents, or 0.78%, to $68.96 a barrel, its lowest level since February 27.
At one stage during trading, Brent dropped as much as $1.60, or 2.19%, to $71.35 a barrel, while WTI fell $1.21, or 1.74%, to $68.28 a barrel, leaving both benchmarks at their lowest levels in more than four months.
“The negotiations that are currently taking place in Qatar are perceived as being positive and that has allowed prices to drift further,” Saxo Bank analyst Ole Hansen told Reuters.
“There is a chance that we could see even lower prices,” he added.
Speaking to reporters on Wednesday, Trump said Washington was “getting along very well” with Tehran and expressed optimism about the discussions held in Qatar.
“The denuclearisation of Iran is moving along well,” Trump said. “They’ve had very good meetings, and we’ll see.”
He added that Iran had “come a long way” in negotiations with Washington.
“We hit them very hard last week. I think they’re fine,” Trump said. “It’s the denuclearisation of Iran, it’s very simple, and Iran can never have a nuclear weapon.”
Technical talks continue under Islamabad MoU
Meanwhile, the US and Iranian officials held technical talks in Doha on Wednesday as they sought agreement on shipping through the Strait of Hormuz and a lasting ceasefire.
Qatar said on Tuesday that US Special Envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner had arrived in Doha for consultations with mediators on regional issues. However, no direct talks between US and Iranian officials were scheduled in the coming days.
The developments came a day after Trump announced that the United States and Iran would hold talks in Doha under the Pakistan-brokered Islamabad Memorandum of Understanding (MoU).
“Iran has requested a meeting. It will take place tomorrow in Doha,” Trump wrote on his Truth Social platform on Monday.
Islamabad MoU framework
The latest diplomatic efforts follow the Islamabad Memorandum of Understanding signed on June 18 by US President Donald Trump, Iranian President Masoud Pezeshkian and Pakistani Prime Minister Shehbaz Sharif after Pakistan brokered a ceasefire between Washington and Tehran.
The agreement committed both countries to halt military operations across all fronts, including Lebanon, reopen the Strait of Hormuz to commercial shipping and negotiate a final agreement covering Iran’s nuclear programme, US sanctions and a permanent ceasefire within 60 days.
Pakistan and Qatar also co-mediated the first round of high-level US-Iran negotiations in Lucerne, Switzerland, on June 21.
The talks were attended by US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf.
Following the meeting, Pakistani and Qatari mediators said encouraging progress had been made, while Washington announced the easing of sanctions on Tehran.
Pakistan’s diplomatic efforts
Pakistan is the main mediator between the US and Iran after it secured a ceasefire on April 08 and hosted the highest level of talks between the two nations on April 12 and 13 in Islamabad.
On June 18, Prime Minister Shehbaz Sharif, President Donald Trump and Iranian President Masoud Pezeshkian signed the Islamabad Memorandum of Understanding to end hostilities and launch further negotiations.
On June 21, Pakistan and Qatar mediated the high-level US-Iran talks in Switzerland.
The first round of Pakistan and Qatar mediated US-Iran talks, led by US Vice President JD Vance and Iran’s Parliament Speaker Mohammad Baqer Ghalibaf, was held in Switzerland a week ago, and Washington waived sanctions on Tehran.
After the talks, Pakistan and Qatar announced significant progress in diplomatic efforts between the US and Iran following the conclusion of the first round of high-level talks in Switzerland.
